Capital and Revenue Expenditures
An expenditure is a capital expenditure because:
Amount is paid in lump sum
It is intended to benefit current period
Amount is large
It is intended to benefit future period
It is intended to benefit future period
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Purchases of machinery are classified as:A. Revenue expenditures
B. Capital expenditures
C. Recurring expenditures
D. Short-term expenditures
Capital expenditures are shown in the:
A. Balance sheet
B. Trading account
C. Profit and loss account
D. None of the above
Taking a bank loan to acquire a fixed asset is a:
A. Capital profit
B. Revenue profit
C. Capital receipt
D. Revenue receipt
An expenditure that benefits several accounting periods is a:
A. Deferred revenue expenditure
B. Revenue expenditure
C. Capital expenditure
D. Current expenditure
Expenses incurred to bring fixed assets to the working site are:
A. Revenue expenditures
B. Capital loss
C. Capital expenditures
D. Deferred revenue expenditures
Freight paid on machinery purchased is:
A. Capital expenditure
B. Capital loss
C. Revenue expenditure
D. Revenue loss
An expenditure that is not written off in one accounting period is termed a:
A. Revenue expenditure
B. Deferred expenditure
C. Capital expenditure
D. Current expenditure
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